The Reserve Bank of India imposed a monetary penalty on four cooperative banks this week for violations of RBI rules and regulations. The total fine imposed on the four banks is Rs 9 lakh.
These banks are- Baroda Gujarat Gramin Bank, Vadodara (Gujarat), Aska Cooperative Central Bank Ltd., Aska, Bally Cooperative Bank Ltd., Howrah, West Bengal and Nabapalli Co-operative Bank Ltd., West Bengal.
RBI has imposed, by an order dated August 07, 2023, a monetary penalty of Rs 5.00 lakh (Rupees Five Lakh only) on Baroda Gujarat Gramin Bank, Vadodara (Gujarat) (the bank) for contravention of directions issued by NABARD on ‘Frauds – Guidelines for Classification, reporting and Monitoring of Frauds’.
A monetary penalty of Rs 50,000/- (Rupees Fifty Thousand only) has been imposed on the Aska Cooperative Central Bank Ltd., Aska (the bank) for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
Similarly, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,00,000/- (Rupees One Lakh only) on Bally Cooperative Bank Ltd., Howrah, West Bengal (the bank) for non-compliance with certain provisions of ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
Besides, the Reserve Bank of India (RBI) has imposed, a monetary penalty of Rs 2,50,000/- (Rupees Two Lakh Fifty Thousand only) on the Nabapalli Co-operative Bank Ltd., West Bengal (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’ and certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.